Three Tips to Improve Gross Margin
In a previous episode, we shared ideas to dramatically reduce overheads, which mostly requires making a few big and tough decisions.
Today, we're talking about how to increase your gross margin, which mostly requires constant little decisions and tweaks over time.
Definition: revenue – COGS ÷ revenue = gross margin
If you don't get geeky about numbers, you MUST find someone who does because focus or neglect on this one number has huge profit implications.
I've witnessed businesses that were overwhelmed, but couldn't hire. Needed more customers, but couldn't afford to advertise. Wanted a better work/life balance, but couldn't take a day off.
In past, we've personally encountered these obstacles as well.
And even though maximizing profit probably isn't why you started your business... It's the answer to each challenges above and more.
Join Blaine and I in a conversation about this 2nd lever to profit, and leave equipped with ideas to start optimizing your gross margin today.
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What I like most about this profit lever, is that the actions you take here start paying off almost instantly.
If you've improved gross margin in ways we didn't discuss, I hope you'll share them with us in the comments below.
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